Is There A Stable Long-run Relationship Between Unemployment And Productivity?
This paper assesses whether productivity and unemployment have a stable long-run relationship. We explore a panel of 19 OECD countries between 1970 and 2012 and rely on recently developed time series econometric methods. Our findings suggest that unemployment and productivity are non-stationary in l...
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Online Access: | https://czasopisma.uni.lodz.pl/CER/article/view/7069 |
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doaj-d4e6c0bc48eb4930802b385625690ad82021-09-02T10:45:30ZengLodz University PressComparative Economic Research1508-20082082-67372015-06-01182577510.1515/cer-2015-00127069Is There A Stable Long-run Relationship Between Unemployment And Productivity?João Tovar Jalles0Center for Globalization and Governance, Nova School of Business and Economics, PortugalThis paper assesses whether productivity and unemployment have a stable long-run relationship. We explore a panel of 19 OECD countries between 1970 and 2012 and rely on recently developed time series econometric methods. Our findings suggest that unemployment and productivity are non-stationary in levels and in many individual cases these series are cointegrated, even after accounting for possible structural breaks. For many individual countries the long-run effect seems to be generally positive. There is also evidence of two-way causality, but the stronger directional relationship runs from unemployment to productivity.https://czasopisma.uni.lodz.pl/CER/article/view/7069stationaritystructural breakscointegrationdolsgranger causality |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
João Tovar Jalles |
spellingShingle |
João Tovar Jalles Is There A Stable Long-run Relationship Between Unemployment And Productivity? Comparative Economic Research stationarity structural breaks cointegration dols granger causality |
author_facet |
João Tovar Jalles |
author_sort |
João Tovar Jalles |
title |
Is There A Stable Long-run Relationship Between Unemployment And Productivity? |
title_short |
Is There A Stable Long-run Relationship Between Unemployment And Productivity? |
title_full |
Is There A Stable Long-run Relationship Between Unemployment And Productivity? |
title_fullStr |
Is There A Stable Long-run Relationship Between Unemployment And Productivity? |
title_full_unstemmed |
Is There A Stable Long-run Relationship Between Unemployment And Productivity? |
title_sort |
is there a stable long-run relationship between unemployment and productivity? |
publisher |
Lodz University Press |
series |
Comparative Economic Research |
issn |
1508-2008 2082-6737 |
publishDate |
2015-06-01 |
description |
This paper assesses whether productivity and unemployment have a stable long-run relationship. We explore a panel of 19 OECD countries between 1970 and 2012 and rely on recently developed time series econometric methods. Our findings suggest that unemployment and productivity are non-stationary in levels and in many individual cases these series are cointegrated, even after accounting for possible structural breaks. For many individual countries the long-run effect seems to be generally positive. There is also evidence of two-way causality, but the stronger directional relationship runs from unemployment to productivity. |
topic |
stationarity structural breaks cointegration dols granger causality |
url |
https://czasopisma.uni.lodz.pl/CER/article/view/7069 |
work_keys_str_mv |
AT joaotovarjalles isthereastablelongrunrelationshipbetweenunemploymentandproductivity |
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